VietNamNet Bridge –  Domestic enterprises are paying increasing attention to product design and packaging, which has opened up more opportunities for the packaging industry in Viet Nam.

A worker of the Phu Giang Paper and Package Co in the northern province of Bac Ninh. Local packaging enterprises are trying to tap into development opportunities.

As the economy has become more open, local enterprises are able to keep up to date with the latest trends in packaging and satisfy diverse demands, said the Viet Nam Packaging Association Vice-Chairman Pham Nhat Thang.

Some domestic packaging firms have invested in machinery in the hope of cashing in on these opportunities.

Late last year, THP Group inaugurated its packaging factory, worth US$30 million, in the southern province of Binh Duong. The new factory is equipped with brand-name machinery imported from France, Canada and Hong Kong.

The company intends to make its factory one of the leaders in the industry in the Southeast Asia region, said its General Director Tran Quy Thanh.

Not to be left behind, Tien Thanh Packaging Co invested $5 million on equipment and machinery updates despite difficulties in 2008.

Tien Thanh Managing Director Nguyen Xuan Tung affirmed that the company would continue to pump investment this year into machinery upgrades and equipment to attract more customers.

Remaining challenges

Despite a significant annual growth rate of 20-25 per cent over the past several years, the domestic packaging sector still experienced several challenges, including dependence on imported raw materials, a lack of professionalism and shortage of skilled workers.

The Packaging Association Chairman, Nguyen Ngoc Sang, agreed that the packaging industry really needs skilled workers and professionals with training in the field.

Liksin Corp General Director Le Dang Quang also listed a lack of skilled human resources as one of the company’s current challenges. He added that multinational packaging companies with strong financial capacities have been giving more incentives to attract skilled workers.

Meanwhile, Thang said that the association was working with the Government, the Viet Nam Chamber of Commerce and Industry and the Ministry of Industry and Trade on a programme to assist this sector’s development.

In order to meet local packaging firms’ increasing demand for production and exports, the Vice-Chairman petitioned the State to regard the packaging industry as a economic sector of national importance.

He also suggested preferential loans for projects in the packaging sector and the establishments of training centres for workers in the sector.

(Source: Viet Nam News)